What?S The Difference Between A Tenant Credit Check And A Tenants Reference
When you are running checks on a potential tenants it is vital to run thorough and accurate searches to find out all the information you need. There are two areas of tenant checking that need to be addressed in order to create a fuller picture of what your new tenant will potentially be like to rent to.
The tenant will need to undergo a tenant credit check. This section of the process is designed to look into a person’s financial history to see if the person in question is responsible with their money. If you find that a tenant has no outstanding debts and has a good credit score then they are more likely to be financially stable, responsible tenants who will pay you your rent on time. If a tenant is shown to have County Court Judgements on their record, with a history of bankruptcy and many undisclosed addresses you may feel that this tenant is unacceptable to rent to as they seem to be irresponsible financially and will be less likely to pay you on time. The tenants credit check looks solely at the financial aspect of a tenant’s life to build a prediction of likely behaviour based on previous patterns.
Tenant referencing aims to look at a tenant from a more personal view and takes that information to help make a decision on the tenant. The tenant will need to provide information on their current employer and their previous landlord so you can get references from both of these parties. The employer reference allows you to confirm that a lot of the information provided to you by the tenant is correct – like their salary, contract basis and actual employer. The previous landlord reference will act as a way to see how a tenant has acted previous to the rental they are taking up with you. The previous landlord reference will show if a tenant paid their rent on time, if they look after the property to the standards expected and if the landlord in question would recommend renting to this particular tenant again. A lot of key information can be gathered by running simple employer and landlord references to assess the tenant’s suitability for your property.
So, its two steps for a full tenant check- a tenant credit check and a tenant reference. With out this information it is hard to know who you are renting to, whether they will pay on time and if they will look after the property entrusted to them. Full and accurate credit checks and references help landlords make smart decisions about good tenants.